Understanding EBITDA Multiple Arbitrage in IT Services M&A

24/09/2025 29 min Episodio 231
Understanding EBITDA Multiple Arbitrage in IT Services M&A

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Episode Synopsis

02:39 — What is EBITDA multiple arbitrage (plain-English walk-through)03:39 — Why smaller firms trade lower and platforms trade higher (the math)07:50 — Beyond size: capabilities, service lines, and moving up the value chain11:49 — Rolling equity 101: the “second bite” and a typical 70/30 construct (example)15:03 — Risks sellers must vet: culture, strategy, dilution, and capital stack terms19:56 — Integration that creates real accretion (when 1+1=3…or more) + “velocity matters”23:46 — Is there a cap? Where arbitrage gains flatten as platforms scale up27:55 — Can strategics do this without PE? Funding paths and “smart money” mindset
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